GENERAL Secretary, Mr. Dharamkumar Seeraj, has warned that the Rice Producers Association (RPA) might look at options to shut down Mahaicony Rice Mills (MRM) if it cannot pay farmers. “Definitely, we need to go a little further, in terms of regulations, to keep the company in line with good practices in the industry,” he said. In an interview with the Guyana Chronicle, he reminded that MRM is yet to settle a $600M outstanding debt to farmers since the 2008 Autumn crop. “We have to regulate it in such a manner that it does not exploit the situation and farmers. We have taken the issue to the ministerial level and will be taking the matter to the President to get compliance with good practices,” Seeraj indicated. He said the RPA, in collaboration with the Ministry of Agriculture, has lobbied Finance Minister Dr Ashni Singh to approve an increased overdraft for MRM, at Demerara Bank, so that miller could meet its financial obligations to farmers. However, MRM has not been cooperating and the RPA, being very uncomfortable with that position, will have to pursue innovative ways to address the problem, Seeraj said. According to him, MRM was asked, by Minister Singh, to submit a list of those to be paid before approval is granted for the extended overdraft. “The bank gave a commitment to the Finance Minister that, once the overdraft is extended, only farmers will be paid,” Seeraj said. He claimed MRM exports in excess of 30 per cent of the total rice production in this country and purchases around 30 per cent of the total amount of paddy in any given crop. Seeraj maintained that the non-payment to planters has made many of them in the Mahaicony area unable to save their cultivations because they did not have money to buy fuel to pump water off their fields. Those losses have amounted to millions of dollars, he explained. Seeraj said some had to take loans to service their crops and, if they plant at a loss this crop, they will not be able to cultivate the next, notwithstanding the support promised by the Ministry of Agriculture. But farmers are still doing business with MRM, mainly because of the capacity of the entity and, with harvesting now in full swing and the other mills congested, they really do not have a choice, he said. Seeraj said, should MRM file for bankruptcy, its assets and stocks in Regions Two (Pomeroon/Supenaam), Five (Mahaica/Berbice) and Six (East Berbice/Corentyne) would be enough to cover its indebtedness to farmers. Meanwhile, Government will, this month, provide fertiliser and seed paddy and waiver drainage and irrigation charges to farmers, to minimise their production expenditure. The interventions, which cost $850M, follow on the heels of Government’s recent reduction of the export commission on the grain, in light of the downward global spiral of prices.
RPA might look to shut Mahaicony Rice Mills
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